LAS VEGAS — Last week at the annual ICSC RECon convention, Denver-based toasted sub pioneer Quiznos announced its plans to open 600 new corporate locations across the country. Currently located in all 50 states, Quiznos is seeking 1,200- to 1,600-square-foot locations with high daytime traffic. The rollout stands to create more than 7,500 jobs at the new restaurants. During the announcement, Quiznos founder and CEO Rick Schaden said, “We are on a strong growth track at Quiznos, and we see the emerging economy as the ideal time to expand brand presence, grow market share and meet strong customer demand. Quiznos has the solid financial position to realize and accelerate tremendous growth, and we are anxious to engage with the best real estate partners as we posture Quiznos for new levels of success.” In addition to its expansion plans, the sandwich shop is in the midst of a brand re-launch at its existing locations. To date, more than 1,100 restaurants have been renovated with an additional 2,000 expected in the next 12 months. — Coleman Wood
NEW YORK CITY — Construction has commenced for a new $650 million research facility at Weill Cornell Medical College in New York City. The new Medical Research Building will contain 480,000 square feet over 18 stories — more than doubling the college's existing research space. It will be located on East 69th Street between York and First avenues. The Medical Research Building will provide facilities for a variety of topics, including neuroscience, pediatric medicine, stem cell and developmental biology, molecular medicine, global health and infectious diseases, and metabolic disorders. The facility will also serve as the home of the Weill Cornell Cancer Center. The project is being designed by Polshek Partnership Architects, and Tishman Construction is the construction manager. It is being funded as part of the Discoveries that Make a Difference Campaign, which is raising $1.3 billion to advance medical research. Weill Cornell's partners in this campaign include New York – Presbyterian Hospital, Memorial Sloan-Kettering Cancer Center, The Rockefeller University, The Mothodist Hospital – Houston and Weill Cornell's Qatar campus. The project is slated for completion in December 2011. Weill Cornell Medical College is the medical school of Cornell University. — Coleman Wood
SOCIAL CIRCLE, GA. — Rockefeller Group Development Corporation has completed a 1.5 million-square-foot distribution center in Social Circle, Georgia. The property is the largest LEED-Gold certified industrial building in the U.S. and second largest in the world. It was built for tenant General Mills. RGDC and General Mills originally sought LEED-Silver certification for the building, but the number of credits accrued in five green design categories exceeded the number of credits needed for LEED-Silver.? ?To qualify for LEED-Gold certification, the building was constructed with state-of-the-art green building practices and achieved the following benefits: • 48.9% reduction in water use with low-flow plumbing fixtures • Energy-efficient light fixtures, occupant sensors, high-efficiency HVAC systems, roof mounted up-blast exhaust fans and wall louvers account for a 50.2% more energy efficient performance over a typical industrial buildings • 33.88% of the materials used on the project were composed of pre-consumer and post-consumer recycled content • 77.2% of the construction waste was diverted from landfills (recycled) by sorting the materials and sending them to the appropriate recycling centers • 55.13% of the construction materials were extracted, processed or manufactured within 500 miles of the project site, helping bolster the local economy • Each area of …
MINNEAPOLIS — DiamondRock Hospitality Co. has entered into an agreement to purchase the Hilton Minneapolis for a total of $155.5 million. The total consideration includes a purchase price of $152 million and approximately $3.5 million that will be provided by DiamondRock to help the seller defease the property's existing mortgage debt, since DiamondRock will not be assuming the loan. The Hilton Minneapolis holds the dual distinctions of being the largest hotel in the state at 821 rooms and having the largest ballroom in the state, which is part of its 77,000 square feet of meeting space. The hotel was renovated by the seller in 2007; upgrades were made to guestrooms, common areas and meeting spaces. The hotel is situated at 1001 Marquette Ave. South, near the the Minneapolis Convention Center and other downtown attractions. DiamondRock expects the acquisition to close in the third quarter. It has committed to make a $15.2 million deposit that will become non-refundable on June 17 unless the company terminates the agreement prior to that date. – Coleman Wood
NEW YORK CITY — The groundbreaking has occurred for a unique mixed-use project in the heart of Manhattan. The $500 million project will include the construction of two schools as well as retail and residential components on a 1.5-acre site at 250 E. 57th St.. The World-Wide Group will be partnering with the New York City Public Schools to develop the project. The first phase of construction will consist of new locations for P.S. 59 and the High School of Art and Design. P.S. 59 currently resides in a temporary location at 250 E. 63rd St., which will be turned into another school once P.S. 59 relocates. Its new campus will increase enrollment from 500 to 730 students. The new High School of Art and Design will be able to accommodate 1,400 students. The two schools will frame and open courtyard that will provide a recreational area for students. A side yard setback along 56th Street will provide another play area. The schools are expected to open in September 2012. Phase I construction will also include the construction of 38,000 square feet of retail space to be occupied by Whole Foods Market. Phase II construction will add 78,000 square feet …
LAKEWAY, TEXAS — Financing has been secured for a new for-profit hospital in Lakeway. In a deal arranged by Walker & Dunlop, approximately $166.87 million was procured for the construction of Lakeway Regional Medical Center. The project will fill a definite need for healthcare facilities in the northwest Austin suburb. Most healthcare facilities in Travis County are located closer to Austin along Interstate 35, and with the suburbs growing in the direction of Lakeway, new facilities are needed. The project will consist of an eight-story, 270,427-square-foot acute care center with a multi-story parking garage. The hospital will offer a full range of inpatient and outpatient services, including emergency rooms, surgical facilities, diagnostic imaging, obstetrical and gynecological services, neonatal, cardiology and pediatric services. Construction began yesterday and is expected to take 18 to 24 months to complete. Hoar Construction is the general contractor and PageSoutherlandPage is the project architect. The project is being financed with taxable Ginnie Mae securities under the Federal Housing Administration's HUD 242 program. The loan carries a 25-year, fully amortizing term and a 6.05 percent interest rate. According to Walker & Dunlop, the deal marks the largest HUD 242 loan ever provided to a for-profit borrower and …
NEW YORK CITY — Though not expected to be complete until June, Manhattan's new 11 Times Square office building already has its anchor tenant. Longstanding New York City law firm Proskauer has signed a lease for more than 400,000 square feet of space. The firm will take 14 floors of the building and receive prominent signage. It expects to take occupancy in early 2011. Ronald Sernaur, a partner with Proskauer and co-chair of its Real Estate Department, brokerd the lease on behalf of the firm. In a statement, Proskauer Chairman Allen Fagin said, “In recent years, we have opened six new offices and grown a number of key practices, expanding our platform to the key financial markets of the world where our clients are located and doing business. This move demonstrates our success in this regard and our commitment to the future.” The 11 Times Square building is being developed by SJP Properties and was designed by FXFOWLE Architects. Upon completion, it is anticipated to receive LEED-Gold certification. — Coleman Wood
FRANKLIN AND ACTON, MASS. — Marcus & Millichap has brokered the sale of two upscale senior housing communities located in Massachusetts for $43 million. The first community is Forge Hill Senior Living, an independent and assisted living community located in Franklin. The facility contains 104 units. The second property is the Inn at Robbins Brook, a 90-unit community located in Acton. The facility provides assisted-living care and was constructed in 2000. The deal was brokered by Mike Pardoll of Marcus & Millichap's National Senior Housing Group in Charlotte, N.C., and Christopher Hyldahl of Marcus & Millichap's West Los Angeles office. The pair represented both the seller, an affiliate of Westport, Conn.-based Westport Capital Partners, and the buyer, a Boston-based investment real estate firm. Additional representation was provided by Todd Tremblay of Marcus & Millichap's Boston office. The properties commanded a price of $221,650 per unit, which equates to approximately $300 per square foot. — Coleman Wood
YONKERS, N.Y. — Berkadia Commercial Mortgage has originated $100 million in construction financing for a new pediatric hospital in Yonkers. The loan will be used to finance the new $125 million location for Elizabeth Seton Pediatric Center. The loan carries a 5.22 percent interest rate and a 30-year term. Payments will be interest-only during the construction period and switch to a 30-year amortization schedule upon completion. The financing was originated by Bradley Grainger of Berkadia's Syracuse, N.Y., office through the HUD/FHA program. Berkadia claims that the loan is the largest HUD 232-insured loan ever closed. The new Elizabeth Seton Pediatric Center will be built on 6.5 acres within South Westchester Executive Park. It will contain 137 beds over four stories. Its 165,000 square feet will serve as a pediatric residential nursing facility and an affiliated school that provides a full range of healthcare service to medically fragile children. Upon completion of the project, which is anticipated in 2012, the hospital will move from its current location in Manhattan's Chelsea neighborhood, where it was established in 1987 by the Sisters of Charity of New York. — Coleman Wood
WASHINGTON, D.C. — Groundbreaking has occurred for Rhode Island Station, a $107 million transit-oriented project located in northeast Washington, D.C. Developed by a joint venture between Urban Atlantic and A&R Development Corp., the mixed-use project will consist of 274 apartments and 70,000 square feet of ground-floor retail built around the Rhode Island Avenue Metro Station on the train's Red Line. The multifamily component of the 8.5-acre site will consist of Class A apartments, 20 percent of which will be designated as affordable housing. Luxury amenities will include a swimming pool. The retail component will contain a mix of retail, restaurants, neighborhood convenience stores and a satellite office for the District of Columbia Department of Motor Vehicles. Ten percent of the retail space will be reserved for local businesses. Finally, two private parking garages will be built for apartment residents, and a third garage will be built to provide parking for Metro patrons. The Metro garage is expected to be complete by summer 2011. The retail and residential components will be open by spring 2012. Bozzuto Construction is serving as general contractor, and Asadoorian Retail Solutions is providing retail leasing services. — Coleman Wood